Beer Marketer's Insights
SF-based Forager continues to push envelope on both food and bev sides, embracing trending MCT ingredient in some of its latest innovation highlighted at last week's Expo East. At Baltimore show, it intro'd Good Plant Fat Yogurt, due in Jan and positioned as adjunct to its dairy-alternative Cashewgurt that contains coconut cream with its valuable MCT acids, but far less sugar than popular yogurt brands like Noosa, at $1.99 per 4-oz tub (in line with price of 5-oz Cashewgurt tubs). On bev side, it was sampling Good Plant Fat Smoothies, in array of flavors including Bulletproof-style coffee, at $4.99 per 12-oz bottle. Flavor range includes Orange Cream (with 16 g of protein), Fat Coffee (15 g), Turmeric Gold (18g), Mexican Chocolate (15 g) and Coconut Cream (18 g). Like current products, these will be made in-house at Indio, Calif, site.
As US refranchising initiative approaches conclusion, Coca-Cola has launched "Coca-Cola Renew" campaign to get out message that it's now a local operation, and one that's involved in much broader range of bevs than just CSDs. "No matter where you call home, chances are, so do we," proclaims ad from Coca-Cola Co USA. "Imagine a huge business - one that employs 90,000 people in the US alone," reads body copy. "All of them dedicated to doing good in the communities they serve, because they're part of them too." Ad goes on to note that Coke is "an organic tea company, a coconut water company …" Individual executions often are tagged with identity of local bottler.
Throwback Thursday
This week in 1984, INSIGHTS shared that Coors exec Gary Truitt recently commented that Coors planned to complete its national expansion by 1988-89. Gary added that part of reason to go national was because Coors was paying a 50% penalty on its advertising. "If they (national brewers) spend $1 on television in the marketplace, we have to spend $1.50 to get same effect."
On-Premise Recovery Drove Control State Spirits $$ Gain; Tequila Takes Top $$ Spot On-Prem; RTDs
On-premise spirits volumes jumped 11.2% in control states last yr, offsetting most of the 2.3% drop in the off-premise + combined channel, NABCA reported this morn. And in terms of $$, the 17% gain in smaller on-premise channels easily offset the slight 0.3% dip in off-premise + combined channel. So continued recovery of on-premise outlets contributed all of control state spirits sales gains last yr. Note that in some control states, on-premise outlets buy spirits from state stores (hence "combined channel" name). So in reality, the on-premise is a bit bigger than the 15 share of volume and 16.6 share of $$ reported by NABCA.
AB's lookin' to further educate consumers on Cutwater canned cocktails amid its mission to become "undisputed leader within the space" with latest campaign "Open the Bar," co announced. New TV/digital ads along with packaging/brand design refresh are officially rolling out thruout the spring, living across social channels, connected TV, premium digital video platforms and retail," per release. All part of AB's plan to double investment in Cutwater this yr (see Jan 30 issue).
After starting in St Louis earlier this mo (see Feb 3 issue), Yuengling is now officially available thruout KS, MO and OK, co announced. Recall, new mkt expansions are thru JV with Molson Coors and brands mostly went with MC distrib network, aside from Breakthru in St Lou and Central States in Kansas City.
Ad Division of BBB Agrees with AB that Miller Lite Should Pull "Water" Taste Claim; MC to Appeal
Miller Lite ad released last yr that claimed "light beer shouldn't taste like water. It should taste like beer," came under fire when AB complained to Better Business Bureau's Natl Advertising Division. NAD agreed with AB that the statement "is not puffery or a mere opinion," agency wrote today. Tho no competing beer named by ad, the claim is "measurable" with "reliable sensory testing." But MC offered no such support, so NAD "recommended that the claim be discontinued."
Plenty of additional tidbits on Boston Beer's year in recently filed 10-K annual report, including new details about the licensing agreements with Pepsi and Beam Suntory, package mix stats and expected shortfall fees with contract partners going forward. Brands developed thru licensing agreements with PepsiCo and Beam Suntory, including Hard MTN Dew, Sauza Agave Cocktails, Truly Vodka and Twisted Tea Whiskey, collectively "represented less than 3% of net revenue in 2022," co shared. Suggests they contributed somewhere between $52 to $62 mil to Boston net revs. Majority of that came from Hard MTN Dew as licensed Beam brands contributed less than 1% of net revs. Recall, this year, co's adding Jim Beam Kentucky Coolers to the mix and expanding Hard MTN Dew to new mkts. Agreements with Beam set to be reviewed every 5 yrs, while Pepsi agreement to be assessed every 2, per filing. Again, Boston only has oppy to send brands licensed from Pepsi thru its own distribs for on-premise channel.
Constellation "Performing Incredibly Well…Including Beer Depletions" in FQ4, Sez Newlands
"Despite the skeptical hypothesis around Constellation" slowing down, Constellation is "performing incredibly well…in line with expectations…including beer depletions for the [fiscal] fourth quarter," ceo Bill Newlands shared during presentation at Consumer Analyst Group of NY (CAGNY) conference this afternoon. After brief slowdown amid fall price increases and CA mkt dynamics, among other factors, Constellation beer picked back up significantly, including huge 14% volume gain in Jan IRI multi-outlet + convenience channels. In fact, STZ's overall beer depletion growth "accelerated" over 6% in Jan and Feb (so far), ahead of fiscal Q3 growth rate after slower start in Dec. And gross margins are at the high-end of its full-year guidance, Bill shared. (He shared these results "because of unique factors" impacting its beer biz previously.)
Dr Pepper Snapple Group backed off its full-year guidance a bit after anticipating writeoff on resin inventory it had on site at defaulting mfr supplying DPS' Mexican operations. Further adjustments may be necessary as Dallas-based co tallies impact of hurricanes, particularly in Tex . . . Long Island Iced Tea has become official iced tea of Brooklyn's Barclay Center, home of NBA's Nets and NHL's Islanders as well as major concert venue. Deal gives LTEA excusive bottled-tea rights at all concession stands and luxury suites as well as signage on scoreboards and end zones and a branded Zamboni that fans will vie to ride upon. Brand already has held similar role at Nassau Coliseum.